Small Business Owners And Estate Planning

Estate planning is not a “one-size-fits-all” endeavor because different situations call for different estate planning strategies. This is one of the reasons why it is always advisable to retain the services of an experienced estate planning attorney when you get serious about planning for the future. There is no reason why the ordinary layperson would be aware of all the options that are available. Estate planning lawyers have the expertise and experience that it takes to understand exactly how to proceed under an individuals unique circumstance.

One of the tricky situations that arise involves estate planning for partners in small businesses. If you were a partner in a small business and you were to simply leave your share to your family, what would they do with it? It is possible that someone in the family would want to assume your day-to-day role in the business, but your partners may not feel comfortable with this arrangement. If your family simply sold its share to the highest bidder your partners would have no say in the matter, and this is not a good position to be in as a small business owner.

The way that these situations are usually handled is through the execution of buy-sell agreements. The two most commonly used buy-sell agreements are the cross purchase plan and the entity plan. With the cross purchase plan each partner purchases an insurance policy on every other. Should one of the partners die, the proceeds from the insurance policies are used to buy that share from the family of the deceased.

The entity plan is implemented by the business entity itself purchasing insurance policies on all the co-owners. Once again, upon the death of one of the partners the insurance policy benefits are used to buy the share of the deceased partner from his or her family.

To gain a deeper understanding of small business succession planning, take a moment to arrange for a consultation with a qualified estate planning attorney who also has a background assisting small business owners.

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Very helpful. Our children and us are are confident in your group. -Anonymous, Fargo, North Dakota

Confident in the Firm

Needed to come in to get specific advice for our needs. The attorney spoke to us in terms we could understand, coming to our level and did not make up feel uncomfortable. They were very considerate and caring. We didn’t feel rushed. We felt like they cared and knew what they were doing. C.P., Minnesota

Considerate and Caring

They were courteous, efficient, knowledgeable, and trustworthy.

D.T., Minnesota

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All of the paperwork was completed in a timely matter. Wayne was very good in explaining the trust to us. ~Anonymous

Completed in a Timely Matter

So much of a client’s high or low opinion of an organization depends on their welcomed feeling. I felt that every time I visited the office, every person I talked with listened and took action on my concern or questions! They were also very friendly. ~J.R., Grand Forks, ND

Very Friendly

From phone calls to signing the final documents I was treated with respect, kindness, and understanding by Wayne & Jenn. Every business that wants their business represented well should have someone like Jenn & Wayne. They both made me feel relaxed and assured I was at the right place at the right time at this time in my life. ~ Deborah Rucinksi, North Dakota

Kindness, Respect and Understanding

Everyone at German Law Group was helpful and pleasant. I felt good about my decision, I thought I was doing the right thing for myself & my family. Wayne took his time and didn’t rush, which is good because a lot of this can be over people’s heads.

A.W., Red Lake Falls, MN

This Avvo rating is killer and so deserved! You are the best brother! The only thing is I think the 10 rating is too low, in my book you go to 11! Congratulations on the award, you should be very very proud. See you at your Holiday party, thx for the invite.